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MODULE:MANACC2-1
QUESTIONS & SOLUTION
ACADEMIC HEAD:
Sharon Eckert
LECTURER:
Patricia Herselman
Sandton City Office Towers, Mezzanine level, 83 Rivonia Rd, Sandhurst, 2196
Postnet Suite #448, Private Bag x10010, Edenvale, 1610 • www.ebs.co.za • Company Registration 2012/018470/0
, Table of Contents
TOPIC 1: Nature and behavior of costs .................................................................. 1
QUESTION 1................................................................................................................ 1
QUESTION 2................................................................................................................ 2
QUESTION 3................................................................................................................ 3
QUESTION 1 – SUGGESTED SOLUTION .................................................................... 4
QUESTION 2 – SUGGESTED SOLUTION .................................................................... 5
QUESTION 3 - SUGGESTED SOLUTION ..................................................................... 8
TOPIC 2: Accounting for material, labour and overheads ................................ 11
QUESTION 1.............................................................................................................. 12
QUESTION 2.............................................................................................................. 13
QUESTION 3.............................................................................................................. 14
QUESTION 4.............................................................................................................. 15
QUESTION 5.............................................................................................................. 16
QUESTION 6.............................................................................................................. 17
QUESTION 7.............................................................................................................. 18
QUESTION 8.............................................................................................................. 19
QUESTION 9.............................................................................................................. 20
QUESTION 10............................................................................................................ 21
QUESTION 11............................................................................................................ 22
QUESTION 12............................................................................................................ 24
QUESTION 1 - SUGGESTED SOLUTION ................................................................... 25
QUESTION 2 - SUGGESTED SOLUTION ................................................................... 25
QUESTION 3 - SUGGESTED SOLUTION ................................................................... 26
QUESTION 4 - SUGGESTED SOLUTION ................................................................... 27
QUESTION 5 - SUGGESTED SOLUTION ................................................................... 28
QUESTION 6 - SUGGESTED SOLUTION ................................................................... 28
QUESTION 7 - SUGGESTED SOLUTION ................................................................... 29
QUESTION 8 - SUGGESTED SOLUTION ................................................................... 30
QUESTION 9 - SUGGESTED SOLUTION ................................................................... 31
QUESTION 10 - SUGGESTED SOLUTION ................................................................. 32
QUESTION 11 – SUGGESTED SOLUTION ................................................................ 33
QUESTION 12 – SUGGESTED SOLUTION ................................................................ 35
MANACC2-1
© Edge Business School
Questions and Solutions
,TOPIC 5: The activity-based costing (ABC) system ............................................ 37
QUESTION 1.............................................................................................................. 38
QUESTION 2.............................................................................................................. 39
QUESTION 3.............................................................................................................. 40
QUESTION 1 - SUGGESTED SOLUTION ................................................................... 41
QUESTION 2 – SUGGESTED SOLUTION .................................................................. 42
QUESTION 3 – SUGGESTED SOLUTION .................................................................. 43
TOPIC 3: Methods of inventory valuation............................................................. 44
QUESTION 1.............................................................................................................. 45
QUESTION 2.............................................................................................................. 46
QUESTION 1 – SUGGESTED SOLUTION .................................................................. 47
QUESTION 2 – SUGGESTED SOLUTION .................................................................. 51
TOPIC 4: Valuing completed inventories: Direct costing versus absorption
costing method ...................................................................................................... 54
QUESTION 1.............................................................................................................. 55
QUESTION 2.............................................................................................................. 57
QUESTION 3.............................................................................................................. 58
QUESTION 4.............................................................................................................. 60
QUESTION 5.............................................................................................................. 61
QUESTION 6 (20 marks) .......................................................................................... 62
QUESTION 7 (20 marks) .......................................................................................... 63
QUESTION 1 – SUGGESTED SOLUTION .................................................................. 65
QUESTION 2 – SUGGESTED SOLUTION .................................................................. 67
QUESTION 3 – SUGGESTED SOLUTION .................................................................. 70
QUESTION 4 – SUGGESTED SOLUTION .................................................................. 72
QUESTION 5 – SUGGESTED SOLUTION .................................................................. 74
QUESTION 6 - SUGGESTED SOLUTION ................................................................... 76
QUESTION 7 –SUGGESTED SOLUTION ................................................................... 78
TOPIC 6: The job costing system ........................................................................... 81
QUESTION 1.............................................................................................................. 81
QUESTION 2.............................................................................................................. 82
QUESTION 3.............................................................................................................. 84
QUESTION 4.............................................................................................................. 86
QUESTION 5 (14 marks / 17 minutes) .................................................................. 87
QUESTION 6 (7 marks / 9 minutes) ...................................................................... 88
QUESTION 1 – SUGGESTED SOLUTION .................................................................. 89
QUESTION 2 – SUGGESTED SOLUTION .................................................................. 90
QUESTION 3 – SUGGESTED SOLUTION .................................................................. 92
QUESTION 4 - SUGGESTED SOLUTION ................................................................... 93
QUESTION 5 - SUGGESTED SOLUTION ................................................................... 94
QUESTION 6 - SUGGESTED SOLUTION ................................................................... 95
MANACC2-1
© Edge Business School
Questions and Solutions
, TOPIC 7: The process costing system ................................................................... 96
QUESTION 1.............................................................................................................. 96
QUESTION 2.............................................................................................................. 98
QUESTION 3.............................................................................................................. 99
QUESTION 4 (16 marks / 20 minutes) .............................................................100
QUESTION 5............................................................................................................101
QUESTION 1 - SOLUTION .......................................................................................102
QUESTION 2 - SOLUTION .......................................................................................110
QUESTION 3 - SOLUTION .......................................................................................112
QUESTION 4 - SOLUTION .......................................................................................114
QUESTION 5 - SOLUTION .......................................................................................116
TOPIC 8: Joint and by-product costing system ................................................. 120
QUESTION 1 (18 marks / 22 minutes) ................................................................121
QUESTION 2 (32 marks / 39 minutes) ................................................................122
QUESTION 3 (18 marks / 22 minutes) ................................................................124
QUESTION 4 (22 marks / 27 minutes) ................................................................125
QUESTION 5 (11 marks / 14 minutes) ................................................................126
QUESTION 6 (10 marks) ........................................................................................127
QUESTION 1 - SUGGESTED SOLUTION .................................................................128
QUESTION 2 - SUGGESTED SOLUTION .................................................................129
QUESTION 3 - SUGGESTED SOLUTION .................................................................131
QUESTION 4 - SUGGESTED SOLUTION .................................................................132
QUESTION 5 - SUGGESTED SOLUTION .................................................................133
QUESTION 6 – SUGGESTED SOLUTION ................................................................135
TOPIC 9: Budgeting techniques .......................................................................... 137
QUESTION 1............................................................................................................137
QUESTION 2............................................................................................................138
QUESTION 3............................................................................................................139
QUESTION 4............................................................................................................140
QUESTION 5............................................................................................................141
QUESTION 1 - SUGGESTED SOLUTION .................................................................142
QUESTION 2 - SUGGESTED SOLUTION .................................................................142
QUESTION 3 – SUGGETED SOLUTION ..................................................................143
QUESTION 4 - SUGGESTED SOLUTION .................................................................145
QUESTION 5 – SUGGESTED SOLUTION ................................................................146
MANACC2-1
© Edge Business School
Questions and Solutions
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